In this article, we will look at the Goldman Sachs Penny Stocks: Top 12 Stock Picks.
In a June 24, 2025, podcast, Goldman Sachs’ Christian Mueller-Glissmann and Alexandra Wilson-Elizondo examined the dynamics driving markets. They also discussed the investment strategies that could work in the second half of 2025. There were many insightful takeaways, but one stood out: they noted that diversification paid off in the first half of 2025, especially away from mega-cap stocks.
A few days later, Goldman Sachs released a report that highlighted a surge in penny stock activity. A particular day stands out in the report’s analysis. It says that on June 12, penny stocks priced under $1 accounted for 47% of total U.S. equity trading volume. Overall, daily volume in this category of equities has increased threefold since 2021.
However, some market analysts caution that this heightened activity is a warning sign. Cetera Investment Management’s Gene Goldman, for instance, warns that elevated penny stock activity is a “sign of a market top when investors are buying first and asking questions later.”
Others insist that penny stocks have been vilified over the years, but this time is different. For example, a Bespoke Investment Group analysis found that penny stocks are outperforming well-established companies. Their data shows that of the 14 stocks in the Russell 3000 that surged more than 200% since the S&P 500’s April 8 low, 10 were penny stocks. In other words, big names may rule the headlines, but many of the market’s future stars begin as under-the-radar underdogs.
A close-up of a financial analyst looking intently at a pie chart, illustrating the fund’s net assets.
Our Methodology
To identify Goldman Sachs’ top 12 penny stock picks, we analyzed the investment bank’s equity holdings as of the first quarter of 2025. We focused on companies trading under $5 per share and also examined the popularity of these stocks among hedge funds. The list is presented in ascending order of Goldman’s stake in the companies.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Goldman Sachs Penny Stocks: Top Stock Picks
12. VinFast Auto Ltd. (NASDAQ:VFS)
Goldman Sachs’s Q1 2025 Stake: $428,158
Share Price as of July 3: $3.64
Number of Hedge Fund Investors In Q1 2025: 8
VinFast Auto Ltd. (NASDAQ:VFS) is one of Goldman Sachs’ top penny stock picks. On June 29, VinFast began production at its second factory in Ha Tinh, Vietnam, aiming to boost the output of its mini EVs. The new plant has an annual capacity of 200,000 units and complements its main Haiphong factory, which aims to reach 950,000 units by 2026.
Despite ambitious plans to expand globally with new factories in the U.S., India, and Indonesia, VinFast has faced challenges such as lower demand and intense competition. Its U.S. plant has been delayed until 2028, while the India facility is set to begin operations next month.
VinFast aims to deliver 200,000 vehicles in 2025 and sold 56,000 units in the first five months of this year. In Q1, it reported a net loss of $712.4 million—an improvement from the prior quarter—but still 20% higher than last year. Revenue surged 150% year-over-year to $656.5 million.
VinFast Auto Ltd. (NASDAQ:VFS), a subsidiary of Vingroup, designs and manufactures electric vehicles, e-scooters, and e-buses across Vietnam, Canada, and the U.S. It operates through three main segments: Cars, E-scooters, and E-buses, offering a wide range of EVs including SUVs, compact EVs, pickup trucks, MPVs, e-bikes, and related battery services. The company is headquartered in Hai Phong City, Vietnam.
11. Altimmune, Inc. (NASDAQ:ALT)
Goldman Sachs’s Q1 2025 Stake: $1,952,000
Share Price as of July 3: $4.90
Number of Hedge Fund Investors In Q1 2025: 13
Altimmune, Inc. (NASDAQ:ALT) is one of Goldman Sachs’ top penny stock picks. On June 26, the company reported positive topline results from its Phase 2b IMPACT trial evaluating Pemvidutide, a treatment candidate for metabolic dysfunction-associated steatohepatitis (MASH). The results mark a key milestone in advancing potential therapies for this chronic liver condition.
According to the company, the trial’s findings indicate that Pemvidutide is the first product candidate to demonstrate significant MASH effects and weight loss within 24 weeks. The trial achieved its primary endpoint, showing “statistically significant MASH resolution without worsening of fibrosis.” This was observed in up to 59.1% of participants in an intent-to-treat (ITT) analysis. In the ITT analysis, MASH resolution without worsening of fibrosis was achieved in 59.1% of participants treated with 1.2 mg of Pemvidutide and in 52.1% with 1.8 mg, compared to 19.1% in the placebo group (p < 0.0001 for both doses).
The trial met several secondary endpoints, including reductions in liver fat content and liver enzyme levels. As such, the company concluded that Pemvidutide has additional therapeutic benefits for MASH patients.
These positive results are expected to pave the way for Altimmune to engage with the FDA in an End-of-Phase 2 meeting. The objective will be to define the path forward, including the design and scope of a Phase 3 trial. A final readout from the 48-week treatment period is anticipated in the fourth quarter of 2025.
Altimmune, Inc. (NASDAQ:ALT) is a clinical-stage biopharmaceutical company. It develops peptide-based treatments for obesity, liver diseases, and metabolic disorders. Its lead product is Pemvidutide, a dual GLP-1/glucagon receptor agonist being tested for obesity, metabolic-associated steatohepatitis (MASH), and alcohol use disorder.
10. Medical Properties Trust, Inc. (NYSE:MPW)
Goldman Sachs’s Q1 2025 Stake: $3,821,000
Share Price as of July 3: $4.46
Number of Hedge Fund Investors In Q1 2025: 19
Medical Properties Trust, Inc. (NYSE:MPW) is one of Goldman Sachs’ top penny stock picks. On June 30, RBC Capital reiterated its “Sector Perform” rating on the company’s stock. RBC lowered its price target for the stock from $5.00 to $4.50 and appended a “Speculative Risk” qualifier to the rating.
According to RBC, the adjustment is explained by two factors: the recent joint venture debt refinancing and higher operating expense leakage due to vacant assets. That said, RBC analysts anticipate that Medical Properties Trust’s stock will likely remain volatile in the coming period due to several ongoing uncertainties. These include several tenant situations (referring to challenges related to tenants like Steward Health Care); the company’s ability to monetize non-revenue-generating assets; and elevated leverage metrics.
Despite the lowered price target, RBC emphasized that its stance on Medical Properties Trust’s stock performance relative to the overall sector remains neutral. This explains the “Sector Perform” rating.
Medical Properties Trust, Inc. (NYSE:MPW) is a real estate investment trust (REIT). It owns and leases hospital facilities, including acute care, rehabilitation, and behavioral health hospitals. The company operates across nine countries, including the U.S., U.K., Germany, and Spain.